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SAO PAULO, Jan 17 (Reuters) – Brazil’s retail sales volumes in November maintained their 2023 trend of slight month-on-month swings, statistics firm IBGE showed on Wednesday, even as Black Friday sells the sector with a timely opportunity. reinforcement.
Sales for the month rose 0. 1% from October, in line with market expectations, while the year-on-year figure showed a 2. 1% expansion, also estimates from economists polled via Reuters.
The retail sector in Latin America’s largest economy has alternated between gains and losses for most of this year, with the country’s strict financial policy restricting sales but a resilient and tough market contributing to customer spending.
“Retail continues to have a tepid sales trajectory and this will most likely continue until the interest rate cut cycle has a bigger effect,” Maykon Douglas, an economist at Highpar, said in a note to clients.
Brazil’s central bank introduced a financial easing cycle in August and has so far cut interest rates by a total of two hundred basis points, but its benchmark rate remains in restrictive territory at 11. 75%.
Six of the 8 teams surveyed by IBGE recorded positive effects in November, with supplies, appliances and clothing among the largest increases thanks to Black Friday sales.
Andres Abadia, Pantheon Macronomics’ lead economist for Latin America, said the sales report was “good,” though it’s true that most of the strength came from the Black Friday boost, and a return on investment is expected next month.
“Looking ahead, key signs and recent insights suggest that the expansion in personal spending will occur in the early part of the year, i. e. from the second quarter onwards,” he added.
(Reporting via Leslie Adler)